I am 1 of 5 partners in a boutique consulting firm. We are currently shopping our 401k plan around to try to get lower fees/better service (looking at Schwab, Fidelity, Vanguard). I will be able to contribute up to the 53k limit if my income is high enough in 2015.
My tax prep guy suggested that my firm look into a defined benefit plan, as it would allow us to sock away even more $$$ in tax-deferred accounts. Among us partners there's a wide range of incomes but I'm pretty sure we're all over 100k, with one or two approaching $1m in any given year. I'm between the two extremes but usually closer to 100k.
Does anyone have experience setting up a pension plan for their own company, and if so, what kinds of questions should we be asking/considering?
I don't really know/understand how they work, and am not sure that my annual income is always going to be high enough to contribute a set amount per year to a pension AND max out a 401k.
Thoughts? Advice? Thanks in advance!